Avacta Group Plc's (LON:AVCT) largest shareholders are retail investors with 58% ownership, institutions own 41%
In This Article:
Key Insights
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Significant control over Avacta Group by retail investors implies that the general public has more power to influence management and governance-related decisions
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The top 25 shareholders own 39% of the company
If you want to know who really controls Avacta Group Plc (LON:AVCT), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 58% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, institutions make up 41% of the company’s shareholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's delve deeper into each type of owner of Avacta Group, beginning with the chart below.
View our latest analysis for Avacta Group
What Does The Institutional Ownership Tell Us About Avacta Group?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Avacta Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Avacta Group's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Avacta Group. A J Bell Holdings Limited, Asset Management Arm is currently the company's largest shareholder with 7.3% of shares outstanding. For context, the second largest shareholder holds about 5.3% of the shares outstanding, followed by an ownership of 5.0% by the third-largest shareholder.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.